Logility Acquires Optiant

Logility Inc., a provider of supply chain management solutions which itself was acquired last year by American Software, has acquired privately-held Optiant Inc., a provider of supply chain optimization systems, for $3.3 million in cash, subject to certain post-closing adjustments. The acquisition is expected to be accretive to Logility’s earnings and cash flow within the next 12 months.

Optiant’s optimization technology helps manufacturing companies and distribution businesses improve both strategic inventory policies and tactical inventory targets to produce bottom-line savings, achieve higher service levels and mitigate the impact of supply and demand variability. Its advanced modeling and simulation capabilities have helped companies in consumer goods, high tech manufacturing, life sciences and other industries manage complex, global supply chains to achieve specific business goals.

Logility will incorporate the Optiant products into the Logility Voyager Solutions suite branded as Voyager Inventory Optimization, and will be marketed to midsize, large and Fortune 1000 companies in the consumer goods, life sciences, process manufacturing, discrete manufacturing, wholesale distribution, and high-tech industries. Like other components in Logility’s suite, Voyager Inventory Optimization can be deployed as a stand-alone solution or as a part of a broader supply chain initiative.

Some of the assets that Logility acquires through this transaction include:

Technology: Developed by researchers from the Massachusetts Institute of Technology working with supply chain practitioners, the Optiant products model and identify interdependencies across the entire supply chain network, from raw materials suppliers and supplier-managed inventory through manufacturing and distribution stages to vendor-managed inventory at customer sites. The solutions help companies reduce inventory costs, shorten lead times, evaluate sourcing alternatives, handle supply uncertainty and balance demand variability with key business objectives.

Organization: The Optiant sales, support and development team will join Logility and continue to focus on providing optimization expertise across the Logility Voyager Solutions suite.

Customer Base: Optiant has helped transformed supply chains for companies such as Black & Decker, Procter & Gamble, Kraft, HP, Nestle and Boston Scientific.